Bonum Certa Men Certa

Software Patents and the FTC's Red Herring

Red herring



Summary: The core problem with the USPTO remains unchallenged because the wrong problem -- or a symptom rather -- is being described and slowly addressed

The USPTO has been harbouring a culture of patenting, motivated for the most part by large corporations' desire to have mechanisms of protectionism in place, barring or weighing down emerging competition (sometimes domestic but especially foreign). The illusion of a 'free market' should be warped to speak of unregulated markets where large corporations are free to do as they please, always assured that the government that they pay will protect them when the need arises, be it by patent monopolies or even espionage overseas (see Cablegate on Boeing for examples). In this culture where offices like the patent office are run by people who came from large corporations (revolving doors) it is not surprising that even so-called 'reforms' are structured to benefit large corporations.

According to this report from the corporate media, the US government (a branch of it) "said it created a pilot program in which its six administrative judges will in some cases determine within 100 days if companies that sue for infringement have adequate U.S. production, research or licensing to use the court."



"In this culture where offices like the patent office are run by people who came from large corporations (revolving doors) it is not surprising that even so-called ‘reforms’ are structured to benefit large corporations."This is not the right thing to do [1, 2, 3, 4]. What they need to do is assess the quality and especially the scope of the patents, irrespective of the plaintiff. They are doing a sort of ad hominem disservice by looking at a real issue which is nevertheless not the core issue.

Well, citing the pro-software patents blog that lobbies on scope and defends trolls, Groklaw names David Kappos, former head of the USPTO and an IBM faithful. Pamela Jones writes: "This is why Kappos failed. He misunderstood what the criticism of the patent system is about. It has *nothing* to do with a reluctance to pay. It's about protecting innovation in a system that has allowed such broad functional claiming, blocking off entire areas of software development, that no one can innovate safely any more. That damages the patent system and the economy and it brings innovation to a halt. The rest is ideology and daydreams."

The FTC is not going to resolve the overall problem even if it tackles patent trolls. The problem is not correctly identified, just a symptom of this problem. As some wise person noted the other day, there is no good understanding of these issues, so the commission will fail. To quote:

First, it notes that the chairwoman of the FTC is expected to recommend an investigation of patent trolls (or "frivolous patent lawsuits" as specified in the headline). The promised further action has not been confirmed, so we will have to wait and see.

The Times then slid around the "patent troll" name and henceforth called them by the less pejorative "patent-assertion entity" or PAE. Still, adding some weight to the promise of action was the "several executive orders" from President Obama "directing executive agencies to take steps to take steps to 'protect innovators from frivolous litigation.'"

The article goes on to describe patent trolls as typically having no operations other than collecting royalties on patents and says that they accounted for more than 60 percent of the roughly 4,000 patent lawsuits filed last year, up from 29 percent two years earlier.

But then the article notes one company that calls itself a "patent-licensing company," raising the question of "what's in a name".

In any case, the Times expects the full commission (two Democrats and two Republicans, with one seat empty), to approve a study.


What they fail to see is that a large company like Microsoft is also engaged in patent assertion. Some say Microsoft makes billions of dollars this way, at the expense of those who actually sell products that customers want. It makes Microsoft not all that different from patent trolls. Sometimes Microsoft uses a proxy like Vringo, which Troll Tracker describes as follows today:
But is that really what Vringo is doing? Are they taking someone’s IP and making something useful out of it, because that person/company cannot? Or are they taking patents that were sold to them by, oh, I dunno, Microsoft just for instance, and using them as a bully stick with which to beat other companies who have already manufactured something of good use and likely didn’t even infringe but will settle so they don’t have to litigate? That’s what would be a bad thing, right?


To get an example of classic patent trolls, see this new article from Joe Mullin, who says that "With so many patents out there claiming rights to basic Web-based technologies, at this point there aren't many businesses in America that are unaffected by so-called "patent trolls." But one troll, ArrivalStar, found a fresh set of targets that earned it serious scorn: public transit systems."

Here is another article about it. "For several years now," it says, "a curious company called ArrivalStar – which has no website, appears to produce nothing, and is oddly registered in Luxembourg – has been systematically suing public transit agencies in the United States. As we wrote last April, the company holds a collection of dubious patents tied to the technology of tracking vehicles in motion. And it has been using them to claim patent infringement by transit agencies that ... track vehicles in motion."

"At the end of the day the largest corporations will benefit and everyone else will suffer even more."This is starting to get a lot of national coverage.Public transit agencies across US say they’re being squeezed by questionable patent lawsuits, according to the Washington Post. Another article says that "A patent holding company has filed eight lawsuits against U.S. banking institutions in recent weeks, claiming patent infringement on products and services related to security and electronic banking."

What makes this troll a problem is that it hurts the rich, and therefore politicians will go after it with great passion. To Quote further: "In some cases, the patents mentioned in these suits are alleged to cover basic banking functions and features used in ATM and online-banking transactions. In other cases, even cryptography methods used to conform to security standards, such as the Payment Card Industry Data Security Standard, have been brought into question, Denaro says."

A simple ban on software and business method patents would resolve this, but the government goes after those entities not because of their patents but because of their business model. What a red herring this is. At the end of the day the largest corporations will benefit and everyone else will suffer even more.

Recent Techrights' Posts

Links 04/05/2026: Energy Shortages Become More Visible, Germans Reject Military Service, Merz Says US 'Humiliated' Over Iran
Links for the day
KDE's Cornelius Schumacher Explains Why You Should be Slop-Free
Output is not measured by quantity of words
Links 03/05/2026: Insolvent US Bailing Out Google, Microsoft, Amazon, Nvidia, Oracle, OpenAI, and SpaceX
Links for the day
 
Links 04/05/2026: "DNC Covering Up Its 2024 Autopsy" and Rudy Giuliani in Critical Condition
Links for the day
Linux Kernel Tainted by Software Patents That Make Linux Worse and the 'Linux' Foundation is Compiling Bribes to Enable This (Promotion of Monopolies and Tolerance of Software Patenting)
Why you need to reboot when a serious bug is found in Linux? "Licencing"...
ChromeOS and GNU/Linux Exceed 5% in New Zealand
Can we expect New Zealand and Australia to divest from GAFAM?
The Real News is Botnets (e.g. Windows With Back Doors), Not Iran
Let's focus on the botnets [...] Microsoft's aim is the opposite of security
SLAPP Censorship - Part 66 Out of 200: Alex Graveley Did Illegal Things, Then Asserted Mentioning Those Illegal Things is Privacy Violation
Alex Graveley "has suffered damage and distress" when the public found out he told women to kill themselves
The Corrupt Lecture the Non-Corrupt - Part XII - Outsourcing Everything to Microsoft, Which is Illegal
Today's EPO isn't about technology or law
Melissa Chan on Why Press Freedom Matters to Everyone, Not Just Journalists
dispelling a myth
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 03, 2026
IRC logs for Sunday, May 03, 2026
Gemini Links 04/05/2026: Another Old Web Pillar Gone and Simple Lobsters Mirror for Gemini
Links for the day
SLAPP Censorship - Part 65 Out of 200: Graveley and Garrett Claims Are Word-by-Word Similar (They Also Collaborated All Along)
We'll keep it short today
IBM Has a Long and Rich History of Showing Chatbots Bear No Business Prospects (From Jeopardy to Watson Healthcare and McDonalds)
Watson Healthcare is already in the dustpan, so they are rebranding it again
Europe Decoupling is Bad News for GAFAM, Especially Bad to Microsoft
Countries want independence
India Needs to Recognise That the World Wide Web is Monoculture in India
In the US, a judge with Indian roots dealt with a case related to this; why won't India?
All-Time Lows for Windows Down Under
seeing the demise of Windows in Australia (historically a slow or low adopter of GNU/Linux) is good news
IBM's Kyndryl Accounting Fraud Explained and More Recently the Insiders Talk About Mass Layoffs
Judging by how the media totally ignored 800+ layoffs at IBM's Confluent and 400+ layoffs at Red Hat a few weeks ago don't expect to hear anything about Kyndryl layoffs
Links 03/05/2026: Water Shortages Crises and Slop Fakes "Are Coming for Your Bank Account" (Slop-Enabled Fraud)
Links for the day
All-Time Lows for Windows in Spain and Portugal
data which became publicly available less than 24 hours ago in statCounter
The Corrupt Lecture the Non-Corrupt - Part XI - EPO 'Products' to Cement Asian and American Monopolies
Only a fool would believe Lame Duck Campinos
Microsoft Windows Falls Below 9% in South Africa
As one can expect, GNU/Linux is measured as going up in France
Gemini Links 03/05/2026: The Black Side of the Web, LiveJournal, Chimarrão
Links for the day
A Month Since Mass Layoffs at Red Hat (400+ Engineers Laid Off), The Media Didn't Cover It
We are very concerned about the state of the media
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 02, 2026
IRC logs for Saturday, May 02, 2026
Gemini Links 02/05/2026: Strange Psychosis and TUIs
Links for the day
Links 02/05/2026: Microsoft Has Begun Rebranding Vista 11 as 'XBox' (Because the Console is Dying), Slop Rejected by Oscars
Links for the day
IBM's CEO 10 Years Ago in IBM-Sponsored Forbes: "For those willing to embrace [blockchains], the future will indeed be bright."
How well did this prediction materialise?
SLAPP Censorship - Part 64 Out of 200: Not Amused by Repeated Threats (to "Shut Down" My "Existence" While Mentioning My Wife Too)
it's about censorship
RightsCon Cancellation as a Data Point in a World Gone Astray
RightsCon should not even be controversial
The NHS is Under Attack by Anthropic and Microsoft (or Their Lemmings That Infect the NHS)
They are kidding themselves if they seriously believe Web-facing source code repositories are the real threat to patients
cPanel is Not Linux, cPanel is Proprietary Software
It's fair to say I've used cPanel for 23 years
Links 02/05/2026: Gen Z is Turning Against Slop and OpenAI/Microsoft Rift Explained
Links for the day
Storage and Memory Prices Are Rising Not Because of High Demand (Production Can Match Demand), It's Partly Because of Price-Fixing (Same as Food Price Increases)
Sophisticated robberies are still robberies
Thousands of Layoffs at IBM, So IBM Pays Mainstream Media to Claim That IBM is Hiring (Paid Lies)
This is a story about the media failing us, not just IBM failing as a company
A Look at DataStax Bluewashing (IBM and Layoffs)
IBM is a place that many people leave or get pushed out of
Gemini Links 02/05/2026: Leaving Session, Alhena 5.5.7, and Slop Failing Customers
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 01, 2026
IRC logs for Friday, May 01, 2026